On Friday, Democratic presidential candidate Sen. Barack Obama unveiled a new short term proposal to help keep small businesses afloat amidst the financial credit crunch, called the “Small Business Rescue Plan.”
“Small businesses are the drivers of job growth in our economy, creating, on average, more than two-thirds of net new jobs each year,” said an Obama Campaign statement on the plan.
Sen. Obama’s proposal calls for the U.S. Small Business Administration (SBA) to extend an emergency lending facility for small businesses affected by the credit crunch. The SBA is a U.S. government agency created from the Small Business Act of 1953, which provides support for small businesses in loans, guidance, and disaster relief.
The new plan would tap SBA’s existing powers, by establishing a nationwide emergency lending facility for small businesses and temporary tax incentives to encourage small businesses to create new jobs. The loans would help small businesses make their payroll, invest in inventory, and meet their day-to-day operating requirements.
“Many small business owners can’t even make their payroll or finance their holiday inventories. Obama’s proposals are one step to help them during this time of crisis,” wrote Obama Campaign blogger Christopher Haas.
The loans would be issued through SBA’s Disaster Loan Program.
Sen. Obama’s current plan for small businesses already includes a tax credit to help offset rising healthcare costs, an elimination of capital gains tax on small and startup businesses to encourage innovation and job creation, and a plan for more investment into women-owned businesses.
The Disaster Loan Program traditionally assists small businesses affected by natural disasters such as floods, wildfires, and hurricanes. SBA’s disaster loans typically have low interest rates of around 4 percent.
“If we don’t act, we'll be looking at scaled back operations, shuttered shops, and laid-off workers,” Sen. Obama said to the crow at a campaign rally in Chillicothe, Ohio. Sen Obama compared his loan initiative to the one offered to small businesses after the Sept. 11, 2001 terrorist attacks.
“Current rules mandate that investors must begin to sell off their IRAs and 401Ks when they reach age 70 and one half,” Sen. McCain said. “To spare investors from being forced to sell their stocks at just the time when the market is hurting the most, those rules should be suspended.”
Sen. McCain also proposes to cut corporate tax rates from 35 percent to 25 percent, to keep American companies competitive against foreign competition.
“Small businesses are the drivers of job growth in our economy, creating, on average, more than two-thirds of net new jobs each year,” said an Obama Campaign statement on the plan.
Sen. Obama’s proposal calls for the U.S. Small Business Administration (SBA) to extend an emergency lending facility for small businesses affected by the credit crunch. The SBA is a U.S. government agency created from the Small Business Act of 1953, which provides support for small businesses in loans, guidance, and disaster relief.
The new plan would tap SBA’s existing powers, by establishing a nationwide emergency lending facility for small businesses and temporary tax incentives to encourage small businesses to create new jobs. The loans would help small businesses make their payroll, invest in inventory, and meet their day-to-day operating requirements.
“Many small business owners can’t even make their payroll or finance their holiday inventories. Obama’s proposals are one step to help them during this time of crisis,” wrote Obama Campaign blogger Christopher Haas.
The loans would be issued through SBA’s Disaster Loan Program.
Sen. Obama’s current plan for small businesses already includes a tax credit to help offset rising healthcare costs, an elimination of capital gains tax on small and startup businesses to encourage innovation and job creation, and a plan for more investment into women-owned businesses.
The Disaster Loan Program traditionally assists small businesses affected by natural disasters such as floods, wildfires, and hurricanes. SBA’s disaster loans typically have low interest rates of around 4 percent.
“If we don’t act, we'll be looking at scaled back operations, shuttered shops, and laid-off workers,” Sen. Obama said to the crow at a campaign rally in Chillicothe, Ohio. Sen Obama compared his loan initiative to the one offered to small businesses after the Sept. 11, 2001 terrorist attacks.
Economy at the Forefront
The issue of addressing the U.S. economy has been on the forefront of this year’s presidential election, as the Dow Jones Industrials have lost more than 36 percent since the beginning of 2008.
At a campaign stop in La Crosse, Wisc., Republican presidential candidate Sen. John McCain also outlined his vision to help Americans wade tough economic waters.“Current rules mandate that investors must begin to sell off their IRAs and 401Ks when they reach age 70 and one half,” Sen. McCain said. “To spare investors from being forced to sell their stocks at just the time when the market is hurting the most, those rules should be suspended.”
Sen. McCain also proposes to cut corporate tax rates from 35 percent to 25 percent, to keep American companies competitive against foreign competition.
